Mortgage Rules have changed
As of today, October 17, the initial batch of the new mortgage rules have become effective.
How does this affect you?
NEW GUIDELINES for all applications with less than 20% down-payment:
— max amortization 25 years
— purchase price can not exceed $1,000,000
— client must qualify based on Bank of Canada Qualifying rate regardless of term (4.64%)
For all applications with more than 20% down-payment:
— max amortization 30 years, even 35 years (contact me for details)
— and will still qualify based on the contract rate if the term is 5 years or greater
Many of these rules can be confusing and may affect your borrowing capability by 15% to 25%. The new mortgage rules, require detailed explanation. There are options that you have; please contact me and I will sit down with you to go over the details with your personal financial strategy in mind.